tv Street Signs CNBC September 15, 2016 4:00am-5:01am EDT
>> plastic bags over handbags. it stops the 600 for the first time in four years. a fall out of fashion on disappointing sales numbers. >> eu car sales jumping by 10% in august as uk demands a start to recover from a post referendum slump. >> it loses its chairman. he resigns in a dispute over the bank's cash call.
good morning, everybody. >> good morning. >> officially. >> officially, yeah. >> is it beavering away, prepping for the show. >> having coffee. >> almost the toechld week and the bank of engallant, of course. >> absolutely. >> no changes from the bank of england before we get to that point of the day, we'll have full coverage of that, of course, flat lining a little bit. relatively stainless start to the sen we saw yesterday. the same goes for our main european equity markets indicate flagtish start to the trade today. we're look at it. just briefly glancing at it. you've got real estate.
the fx markets. here you're looking also against stability, for example, the pound. the s & b saying it remained significantly overvalued. now, the last batch of u.s. economic data august resale sails down is set for release as fed watchers wait to see if this last publication could push the fed toward a september rate hike. let's get in peter rosen straigrosenstreich. >> i think we're probably stuck at this foimt. we're stuck at a slightly weaker
retail number after the july number. i think the incoming data is probably going play less of a role than perhaps the fedspeak did coming in. i think most people are going to cruise into the meeting. snoop we've seen that yielding curve steeping higher. that's been spooking stocks. what do you think? >> two things. one, it is not the popping of the bond bubble. >> why not? >> first of all, we don't think the global loose monetary policy, you know, regime is over. we don't believe the fed is going to raise rates in september and very unlikely to raise rates in december as well. number two, there's an enormous wall of money out there, $10 trillion estimated, yielding paper, which as soon as those numbers start rising significantly, the u.s. curve
starts rallying significantly, we see that money pour right back into it and suppress the yield rally. we saw that on friday when the german yield ticked above negative levels. all of a sudden everybody rushed from the u.s. into german paper. i think that wall of money will suppress any type of popping of the bubble. >> what's a fair level for the u.s. tenure? we were at three-month highs on the yield. 1.75. we're now at 1.71. where are we going. >> again, we have a subdued or dovish view on the economy and i think that needs to be expressed very clearly. i do believe 1.06, 1.65 is a safer bet concerning what everything else is doing. all of that is going to keep a lid on where the u.s. tenures can go. so overall we think the mixed data of the u.s. is really not
going to put too much pressure on the yield curve. >> you say you continue to rehold on the shorts that you already hold. >> correct. we don't believe in this sort of rally. we don't believe in this yield rally as well. so we think that, you know, looking for more value, chasing that yield while, you know, it might be unattractive and one that's completely overplayed at this point, it's still going to be the best bet out there. >> what are some of the shorts? >> well, one of the shorts would probably be things like the dollar, swiss franc, moving into yen trades, e.m. currencies. mexico, high risk. we think this blast we've seen recently is not going to hold up and when people start realizing the fed is not going to do anything and we're in that sort of goldilocks position where low interest rates, low growth are going to keep central banks conservative, we'll see it come
down significantly. >> can i ask you about the snb. is it fair to say the snb is reacting to the other at this point? >> it could be. if they were trying to set policy, they would probably get washed over. so i think by standing aside and understanding the capabilities, that's critical. i think what's also noticeable is their communication strategy is very tighter than what we see in the feds especially where every fed member is coming out and pushing their ideas and getting interpreted by the market and causing significantly rogue volatility out of nowhere and extremely disruptive. the snb is much more conservative and has been -- you know, they haven't had a
significant policy speech since, i don't know, april or may of this year. so it allows the market to sort of look at the da tarks you know, not try to interpret everything that's being said. and i think it's a very good way and a good model for many central banks moving forward. >> now it brings me to the boj. maybe there's too much talk, too much expectations. we did see a weakening of the yen there. do you think that's sustain snbl. >> i think they were caught in this sort of communication trap, you know, where they've expressed what they were going to do with economics and they say how they're going to target inflation, and none of it's come true. the credibility is really in a rocky place, they're probably going to come out with an assessment that says we need more time, more inflation marks. they could probably take a good stance in learning what the snb's done. i think that's a good example. we don't expect something at
next week's meeting. it's just going to say the policy's not working. we'll continue to see repaetrie yags. >> they can get back beyond 1.05, you say? >> i think it would be very challenging. the dollar/yen trades significantly o on the dollar/yen spread and we're seeing a prior widening of the front end yields, so as that contracts, i think we'll see continued strength in the yen. i think it will be difficult with the fed not raising rates for the dollar/yen to go above that 1.05 level. >> peter, thank you so much for your time. peter rosenstreich. the italian government said they'll decide the date of the italian referendum on september 26th. renzi had previously said the vote would be held between
november 15th and december 5th. now we have a date. >> it's always waiting for something. are we waiting for any more movement in the italian banks? the bank has now appointed its new ceo michael morelly. he's been the ceo of merrill lynch since 2012. he's also the vice chair. he's also professor at roems lewis university. now, he'll have to deal with the 20.7 bad loans. the mps emerged. he'll have the tough challenge of persuading investors to back a $5 billion cash call. we're joined out of milan.
claudia, good to see you this morning. the new ceo as we just heard has a whole long list of things that he needs to get through and move quite swiftly as well. it's at least seen as being a good step they are going to be going down this new route though. >> well, certainly. he will have to move swiftly, which he is actually well known for doing. so clearly that may be one of the reasons why he was picked. another one is, of course, he does come from there. he spent six years there, leaving in 2010 when he was cfo of the bank. he knows what he's working for. of course, the bank, as you were saying, is dealing with big issues with their npls that need to be spun off and the capital hike, which may be one of the reasons he is there. going forward with the new hike aftergo having gone forward already with a couple that amounted to 5 billion is
certainly not going to be easy. you talked about the date of the referendum being decided. the date in which they will decide the date, that will also imply a decision then to decide when to go forward with their capital hike because the referendum, of course, is an issue that needs to be resolved before they go to the market. they need to be there to attract investors to buy into this italian bank. that, of course, is the worst. and the stress test that it did not pass. there's always the fact that the chairman who's been the chairman since august of '15 is stepping down as well. this means there's a big change in both the ceo position as well as the chaerman position. he is steching down formally because at the preliminary phase of the bank's relaunch has been
completed. according to our sources, cnbc sources, he's stepping down because he's leaving the bank. it's something he was not in agreement with publicly. a few days ago he said he supported the work he was doing. so clearly this does mean that he does not -- he is not in full agreement with what is being decided by the government, which is the major shareholder at this point. remember also that he has in this year earned no money for what he has been doing. he actually left his $500,000 euro salary to the employees and it was put in a fund for the employees. so clearly it tells us he is leaving while not yet working, making any money from it and he's doing what he really feels he should be doing. it will be not easy to replace this very well reputed chairman. back to you for now. >> claudia, thank you very much.
joining us there live out of italy. the uk government has given the hinckley point project the green light after reaching a new agreement with edf. officials say they'll be able to prevent the sale of edf's controlling stake prior to completion of the construction. the government also outlining how it's going to be putting in in safeguards for strategic important safeguards in the future. now stakeholders including french and the chinese governments, they can breathe a sigh of relief after a week of numerous reports that the deal could be scrapped by downing street. they're expecting hinly point to cost billions of pounds. it's expected to create 25,000 jobs, powering 5.8 million homes from 2025. for those of you who don't know, somerset is down in the left of
uk. for the most part. for more head to cnbc.com. we'll be looking at the complex negotiations behind the deal. it's also online. you can e-mail the show with any comments or lines. it's also interesting to hear from you. streetsign s @cnbc.com. >> we're going to go for a break. maybe iced coffee because it estill so hot out. have you been outside? >> no, no. >> another 31. >> it was supposed to cool off. >> that's tomorrow. the rain is going to come. >> coming up on the show morrison is dancing on top of the supermarket after they return to the profit for the first time in four years. we'll bring you those and other details on the earnings after the break. we'll be right back. [child giggles]
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hi, everybody, welcome back. you're still watching "street signs." asian markets really flat. sri segarajah joins us now. >> we've got main line equities performing. we were off by 1.3%. a lot of the people in the market are not now particularly optimistic that the bank of japan is going to come to the table in any big way and aggressively stimulate and reflect the economy.
that's one view, anyway. although there is still a conversation about helicopter money. further down the line there is also talks still about for a further into negative territory operates. on the other side of the equation on the other side, they're outperforming today. it's on fire. it's up by 2.2%. biggest gain in almost six weeks. not a great deal of conviction until we see some clarity. ladies, back to you. let's get to some earnings. john lewis has reported an exceptional charge after deciding to write down property assets for its supermarket chain. it fell a whopping 74% while sales across both the john lewis reports group. they say the uncertainty of the
brexit and the impact of the vote have yet to be clear. >> shares of h&m near the bottom of the list. both missed on expectations. august sales rose by 7%, far short of analysts' recommendations of 13%. it was struggling with exceptionally hot weather in most of its markets. >> warning of a challenging trading environmental since july. the british retailer said full price sales were down 0.3% on a comparable basis but it maintained its full year guidants and speed up store openings this year. >> meanwhile lee morrison is trading at the top of the 600 trading, up by 6.5%. the british grocer saw underlying profits rising by 6%. they see no adverse impact.
brian roberts retail insights director joins us. good morning and welcome. i say possible because it hasn't happened, right? we don't know with article 50 and all the rhett of it. but talk us through what morrison's has announced so far. they were struggling a year ago. davids potts came on board 18 months ago. we have seen the beginning of the turnaround with a set of being on a trail of profits. >> yeah. i think he's built on what dalton phillips achieved preefsly. he's certainly started turning around the core business, building on morrison's strength, which is a cute expertise and procurement. in store, per tees. i think shoppers are reacting well to the strong marketing of the craft abilities. also more favorable to run. launching into this whole deal with amazon. it's good news all the way around. shoppers are responding to the
much simpler promotions and ranges and also quite strong action. they beat expectations on profit and sales and that's why we're seeing them on top of the leaderboard and dragging them as the stock supermarket prices reacted positively. >> why is it they stand to possibly cope better from a brexit scenario. >>? >> they import much less. as i mentioned, they're one of the largest food producers if you like in the country. they're supplying other companies as well. you know, huge expertise in terms of sourcing, procurement, and processing of food. that means they're relying a lot less on imports. >> markedly different picture. a fifth day decline, nearly 10% since the close last thursday.
what's going on? i read a note this morning saying the stock has lost its edge. >> yeah, i think we're used to just unrelenting good news. what we're seeing at the moment, the wheels aren't coming off by any stretch of the imagination. it's been a bit of a slowdown. they've always performed against their key competitors. but they are being hit by their uncertainty. they're warning they're going to take a hit. they've been very, very open, very explicit. they will see it. they will protect margins and they will pass on those price increases to shoppers. i think a fairly cynical, perhaps very honest thing that they said is a lot of the products will be different, so shoppers might not notice some of these price increases. last time they increased by this magnitude, there was only a slight sales decline. what we're seeing in terms of the stockmarket reaction, the realization that the good news can't keep on cominger from.
weather is hitting next. we're seeing strong capacity from other retailers too. >> we were talking about the heat wave that we were seeing. very unusual for the uk at this time of the year. at what point do you believe that many of the retailers will actually come out with a big warning because september was too warm for their taste? >> i think there's lots of unpredictable factors that play. one unpredictable factor was the huge clearance was the closing of the bay of chest stores. many have been buying clothes from that business. the weather has been incredibly unpredictable. i think it's a given. so retailers are going to have to get used to that. they're going have to get used to the fact that operating in a two-season way or three-season way based on what used to be predictable weather, that's no longer predictable. i think there's going to be a lot of retailers across europe,
not just in the uk, bemoaning this very unpredictable warm season in september. >> very briefly we were talking about the retailers. do you think other retailers, are they going to -- >> they migrated. yeah, exploiting these e-commerce leaders to get into the hands of consumers makes absolute sense. >> very much. inside director at tcc global. now, have uk customers shrugged off the economic uncertainty? we'll be breaking down the retail sales down at 10:30 cet. so imminently. let's get back to some m & a. a cash deal after four months of talk the usc giant finally accepted a sweetened off of $128 a share but it's likely the
traction will face tough laeg torrey hurdles given the wave in the sector. speaking to dec yesterday, they explained the rationale behind the tie-up. >> it's driven by growth and innovation and not necessarily huge cost-cutting. this is going to be driven by highly driven economic pourt foal yours. during the contract negotiations you can certainly see a lot of the activities surrounding it. it's all about the uncertainty. we developed a giant level of comfort, the anti-trust disposes that might be required can be managed with the combination of our two businesses. >> let's get out in front. day after the announcement there
was a lot of press coverage and many people say this deal was doomed because there's been so much regulatory and political pushback. what are you hearing? >> well, actually there's a 50% likelihood that that is what i am hearing from analysts that this deal might fail or go through whatever side of the coin you look at. but looking at the regulationary burden, there are more than 30 regulators that i have to get through with that deal. it's an immense work still ahead of them. lookingrationale, this is quite compelling. both are complementary to each other. one is producing mainly pesticides, whereas, the other is producing mainly seeds. looking at them, they're under pressure as well with the farming economy going down in the cent three years. prices for crops is going down. so they have some pressures as well, some headwinds.
i would say like analysts saying as well, this is a long time bet on that industry. the crop signs industry, as people are saying or management is saying that, of course, the population of the word is growing and also climate change will play a vital role in that business wchl that, back to you. >> thank you very much. >> that's one of my favorite songs. >> i can never figure the words out. >> different kind of informa. they'll be creating one of the largest exhibitions, events, and conferences. we'll be speaking to the ceo of in informa.
>> do you want to sing a song to him? >> maybe they can use it. check out of european blog. lots of good stuff on cnbc.com. we'll see you right after the break. [child speaking indistinctly] announcer: are your children in the right car seat for their age and size? it may be too late to check when you're on the road. [blaring car horn and skidding] fortunately, you're on the couch.
recover from a post referendum slump. >> marcus morelli is named chief executive. resigning in the dispute over the bank's cash call. we even got some uk august retail data for you and that beat expectations. down month to month versus july plus 1.9%. the reuters poll was looking for a decline of 0.4 or 0.5%. once again beating expectations and look we had that big slowdown in the month of june and the spike in july. now it seems that we're moderating a little bit, but, again, no major slump, so
showing little sign of a brexit vote slowdown. let's have a look at the slowdown. we did see a bit of a spike on the back of the data and that follows plenty of good data points. it's not for me to say. >> yesterday the jobless rate holding up well on the back of the votes too. the bank of england definitely needing to look closer at this data. their latest rate decision due at 1300 cte today. >> sam hill is the economist that obviously capital markets. he's with us. wasn't all he did. they cut rates by 25 basis points. they're saying they're buying up to 60 billion pounds worth of bonds and 100 billion pound scheme to encourage banks to lend cheaply to uk companies out there.
i mean they really have no reason to do anything today or could they surprise? >> i think the central case is probably that it will be a unanimous vote. of course that doesn't rule out further meetings later in the year. we'll see bank rates at the november meeting. >> do you think if they were to do that, go to 0.10 in november, do you think that would be justified or is there a reason for it? >> well, as you've just been remarking, things like retail sales aren't necessarily yet showing over the strain of the referendum effect, but this is a very long drawn out process that will take to see the full
effects of the impact of the vote to leave and, for example, it will be after the november mpc meeting that we even get the first quarter's business investment data. it took the decision to play the long game. i looked through that short on volatility. we think next year as a result of the loss of confidence, business spending and consumer spending will slow and that there will need to be support for the economy. so i think it's right for the bank of england to go early and go fairly aggressively on losingen policy. >> sounds certainly that the boe and mark carney will have to acknowledge that it has been better than forecast, otherwise, it would hit their credibility, wouldn't it? >> i think they're perfectly prepared to call the data as it is, but i think we do have to bear in mind a lot of the data that we have seen so far with
the exception of retail sales has been survey data indicators, rather than actual hard data produced by the o & s that will feet directly into the gdp. i think when you look at things there, crucially at the end of this month, the services data, it might well be that that turns out to be a much more mixed picture and i would certainly do out with that. little growth at all would be expected in the second half of this year. >> we're also expecting a sizeable uptick in inflation over the next couple of months. is this something the boe will have to look through, that they simply can take credit for even if they would like to? >> well, yeah. i mean, you know, looking through it is exactly the right thing. our forecaster, they get to around 2.4% in a second quarter of 2017, so therefore, above
that, we would see it fading gradually. i think their focus is much more about the median turn and the effects could mean a two- to three-year. that's why the stimulus package they announced in august was designed for the median to long term rather than react to a couple of survey data points immediately following the referendum. it's going to be a tough gain for them and they're going to have to sit through some uncomfortable data points. i would say they're on the right track. >> sam, thank you very much. sam hill, the economist at rbc capital markets. incidentally, speaking of the bank of england for live coverage, tune in to our "decision time" show that kicks
off. >> meantime a quick look at what the european equity markets are doing. they're up. the dax is losing. just holding onto the flat line. we're near at one-month lows. a week-long losing streak is what we've been losing here. we've fall on the five days in a row. why is that? is it because of the steepening of the curve, less effectiveness of the monetary policy or because of mixed earnings report? i guess it's all about the u.s. treasury yield. the ten-year yield ems. the u.s. futures are looking like this. we're expecting a slight look seen off by roughly 3 1/2 points. the dow jones could fall off by 18 points. this is after we saw a very mixed trading session yesterday lack conviction in the u.s. markets right now. and speaking of the u.s. from a political point of view, a, quote, national disgrace and
international pariah. that's called on the republican presidential candidate donald trump. that's according to leaked e-mails which the former secretary of state has confirmed as authentic. hillary clinton was targeted in the hacked correspondent with colin describe as swhatd greedy and unbridled suspicion. they expect a group linked to russia is behind the hack raising fears about russians interfering with the u.s. election. a pastor was interrupted while giving a speech in flint, michigan, the site of the worst water crisis. >> hillary clinton has failed. nothing she work at, nothing. >> mr. trump, i invited you here to -- >> oh, okay.
that's good. >> they were taken with both candidates at pawns. days after hillary clinton was diagnosed with pneumonia, trump reports he claims to be in great health. the 70-year-old republican presidential candidate admitted he could lose a few points but otherwise is in good health. its we taped and he'll be on dr. oz today. >> so straifrmg. >> that's his style. >> i know. but just the whole way everything is changing with regard to how people are voted into office. will it ever be the same again after this? >> big paradigm shift. just hours after the taping hillary clinton released a letter from her dock tor declaring her sufficiently fit to serve as president. the 68-year-old is said to be
recovering well according to her medical team, seeking to explain her wobbles in public earlier this week. the presidential nominee is set to return to the campaign trail today. let's get out to tracie potts. tracie, both candidates are trying to get way from the health issue, but it seems that they can't. >> yeah, it's sort of like a race to the doctor with the medical records between these two, hillary clinton who we haven't seen for four day. she'll be out today in north carolina in a speech that is supposed to focus on the theme of her campaign. this will be the first time that we've seen her. after that she's going to spend the next few days here in washington. and she did release that two-page -- i should say that extensive letter from her dodge tore saying a number of things saying she has been on a blood thinner to make sure she's safe from blood clots which she has suffered from in the past. she has low cholesterol, according to her doctor, and is
not only healthy and fit to serve, but this was an interesting note, is mentally in excellent condition she noted that letter. then there's donald trump who did that piece you saw in "the dr. oz show" that everyone else will see today where he released not necessarily detailed medical history but certainly the most recent screenings that he's had along with some a little bit before that where dr. oz sort of quickly looked through them. he told us in an interview later he didn't get a chance to review them in advance, so he's quick lig looking through them. he thinks he's in excellent shape, could stand to exercise and eat a little better. he likes fast food. as you said, lose a few points. what's interesting is 70 years old and 68 years old. donald trump and hillary clinton, the two oldest if elected to ever take office. and this health issue has become a real issue for both of them. >> tracie, thank you very much. tracie potts from nbc news.
i couldn't do what they're doing. >> do you want to come to work like that every day? >> it's grueling. absolutely gruelling. >> they're the oldest as tracie said. they're not going to release everything. imagine you've got 90 warts on your hand. >> what impact will trump have on the economy according to one, trump could wipe a trillion from the economy. read more on that. european car registrations jumping 9.5% in august with italy's fiat in the driver's seat. helping parent volkswagen to record 6.3% growth while uk demand picked up after a post referendum slump. and the race to bring the self-driving cars to the market is on. uber may be taking a lead less than two years after hiring top
autonomous vehicle engineers from melon carnegie. uber is now driving self-propelling rides in pittsburgh. phil lebeau has more. >> reporter: is this the future of ride sharing? uber says it could be. that's why it's operating a handful of self-driving cars in pittsburgh. >> i think the public's going to be dlieded. this is going to be an interesting experience. now you have kind of the future coming to you a little bit early. >> customers who order an uber in this city will be offered a chance to ride in a self-driving car for free. uber will have a driver and engineer in the front seat monitoring the car's performance and standing by to take over if something goes wrong. meanwhile there's a screen in the back seat so customers can track their ride and see what the car sees. >> like other autonomous drive vehicles, the uber autonomous driver lets you know or the driver let use know when the
car's ready to take over. hit this button and now the car will drive itself. in fact, we're going to turn at this intersection. that was the car entirely. >> why is uber modifying ford fusions and others with 20 cameras when the company already dominates the ride share business in the u.s. to pay real people to drive their own cars because several automaker and tech firms are testing or plan to roll out their own ride sharing programs so when the day comes that autonomous cars start to take off, uber will have a fleet ready to roll. >> there's a conscious effort with the uber to drive first to market because the business opportunity is pretty strong for them. >> reporter: but are people in pittsburgh ready for self-drivenen uber cars? >> i would definitely feel comfortable driving in a
self-driving car. i trust it over drivers. >> i just took a uber and they asked if i would take one. i said no. >> i don't think the average person would be okay with no one behind the wheel, you know what i mean, but i think it will be something good for the city. >> pittsburgh will soon find out if these strange looking cars will become a normal part of getting around the steel city. phil lebeau, cnbc news, pittsburgh. >> would you do that? >> i'm not sure. i'm not sure. >> slightly scary, isn't it? >> i guess i don't trust it in its stability to drive away from other cars moving toward you. i guess i should. i guess technology should be better than snus there are so many human errors. what if your uber driver has had a long night or he's distracted. >> would you go in a self-driving car? >> i'm still skeptical. let's talk more on amazon. launching a voice controlled
speaker. we take a look after this short break. don't go away. announcer: alvin and the chipmunks want to remind you-- bacteria can hide in food and make you ill. wow! announcer: but you can keep bacteria from ruining your day with 4 simple steps: clean. i'm ready for the rinse cycle! announcer: separate. all: woah! announcer: cook. fire in the hole! announcer: and chill. chipmunk: we chipmunks are notoriously tidy. announcer: check your steps-- the roadchip to food safety starts at foodsafety.gov. chipmunk: whoo! this is awesome!
california grown with no antibiotics ever. let's get comfortable with our food again. welcome back to "street signs." you're watching cnbc. uk officials, they say they'll be able to control it. the government also outlined how it would be putting in place new safeguards for strategically important projects in the future. apple has now confirmed the initial quantities of the new
iphone 7 has sold out in all colors. the jet black shade of the iphone 7 has also sold out. they logged their best daily performance since july, up by 3.5%. jeff bezos is now the third richest man in the world. the amazon founder has been on the rise along with his company and has surpassed warren buffett on the forbes list. bezos had briefly overtaken buffett back in july but failed to cement the number three slot. they look to place itself at the center of people's homes. went along to have a lisson. >> meet echo. >> hi. >> sh is amazonspeak, the company's personal digital
assistant. it can connect smart device in your home, play music, and order. the e-commerce giant launched the device two years ago in the u.s. and it's finally bringing it to the uk in germany. >> our aspiration is to be everywhere that amazon exists and more on amazon device it's looking to be the center of your home so you can do things like this. alexia, tell me a joke. >> why are the middle ages sometimes called the dark ages? because they had so many nights. >> amazon, google, and microsoft believe we'll be talking more to inde advices in the future which is why they're investing in artificial technology. >> smart speakers have a lot of technologies. the voice sounds really natural in every country. the other is getting very good web search results. >> alexia can answer basic
questions and carry out basic tasks but it's only going to get smarter. >> i think alexia will become more and more conservational, natural, like a human interaction. >> alexia, stop. >> do you think they can succeed with this one? >> i think what's underlying is the alexa. it's similar to apple siri. you can talk to it, ask it to carry out tasks. it can care out tasks with light bulbs and refrigerators. what's key for amazon is what they do with alexa going forward. >> it seems to me also that you have a lot of these large tech companies where it ee all about getting the brand in your home before the internet of things properly takes over, that they want to make sure.
i mean there's no reason for amazon otherwise as a branded item to be in your home other than we go online and we buy stuff. >> that's very true. amazon wants to be that hub in your home. they've integrated with that company called pebble. for amazon, which doesn't have a platform like ios or android, it's trying to put its technology across many hardware plays. the key is it becoming a platform. >> they're not going to make money with this device by selling the echo. they want to make money for the platform and consumers buying their stuff. music, food, whatever, right? >> that's exactly correct, carolyn. it's all about amazon becoming the platform. they've cut a couple of deals with spotify.
you can ask alexa to play a song. there are going to be a lot more deals along the way. >> you can head to our website to check out the rest of our transformer covers and take a deeper dive into the home strategy. that's all on cnbc.com. twitter has announced a suite of software saying somehow it could be a critical move for the company. cnbc's julia boorstin has more. >> reporter: this comes ahead of the centerpiece of that strategy, streaming nfl games that start thursday night. twitter's launching new apps for apple tv, microsoft and kindle fire. you won't be able to send tweets oar follow accounts from the tv app which makes it a big departure. the content that will be in the spotlight, twitter sports partners including the nfl,
major league baseball. the nba and pac-12 networks among others plus videos from its periscope and buy naps. it hopes the apps will help twitter jump start its user and revenue growth. shares are down by nearly a third over the past year on persistent questions and the company's long-term potential. this focus on a larger screen experience is ceo jack dorsey's change and biggest bet in the past year. back over to you. >> are they betting on apps or tv image? clearly they're not betting on tv in its current form. >> they're betting on live sports in particular and the appeal it has. we've seen the deals they've cut with major league baseball. so what twitter is hoping is that this attraction of the broad sports viewing experience will bring users to twitter, and they don't even have to be logged into twitter to be able to view the experience, but the hope is that this can drive
people to log in, to sign up, and to be more engaged with twitter as a platform. >> obviously they want to have a slice of the pie of the live tv market, the live video market, but so many other players are well established if you're looking at facebook, snapchat for example. do you think twilter is now entering a little bit too late? >> no. i think the deals are interesting ones. as i mentioned, they're very mass market, broad appealing sports. there are not many plays that are offering that kind of content when it comes to the likes of snapchat. they're offering pieces of those. that's where twitter is trying to sell this as a unique point. >> obviously they won't increase the average users. that's been stalling at 313 million right now. shares down 35% year to date and even last quarter they said the ad business might be struggling much further. does this really move the company more profitable in a agreeing direction, do you
think. >> i think it's the right direction. we know they command a more lucrative price, but also this is quite a big time for twitter because this is potentially the last roll of the dice for the manager. a note from cantor fitzgerald saying if this doesn't reig nate user growth, the discussion about twitter taking ore, perhaps being taken private comes back on the table. >> ar jen, thanks for that. we're looking at this. a quick look at european markets as well. we are mixed, close to one-month lows. we are on a five-week losing streak and here's the picture. the dax. we're waiting for that boe announcement. no change. the cac and ftse down.
>> tune in to our "decision time" show. incidentally we'll be speaking first to the informal ceo stephen carter after the company agreed to buy information services if 1.2 billion pounds. 19 degrees tomorrow. 29 today in london. that's it for today's show. i'm louisa boilson. >> i'm carolyn roth. "worldwide exchange" is up next. see you tomorrow. bye-bye. ping on the train, running all over portland. i have to go wherever the work is. trains with innovative siemens technology help keep cities moving, so neighborhoods and businesses can prosper. i can book 3 or 4 gigs on a good weekend. i'm booked solid for weeks. it takes ingenuity to make it in the big city.
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good morning. forget the fed. the bank of england is the focus. also new this morning apple says initial quantities of itself iphone 7 plus are already sold out. plus, twitter goes for a touchdown. the social media company will livestream an nfl game for if first time ever tonight. it's thursday, september 15th, 2015. "worldwide exchange" begins right now. good morning and welcome to worldwide skparj on cnbc.